Vectren: Natural gas budget-billing rate down by 40%

A typical Vectren Energy Delivery of Ohio residential customer who paid $105 a month for natural gas a year ago on the budget-billing plan can expect to pay $63 now, a decline of about 40 percent, a spokesman for the utility said Thursday, Aug. 6.

That figure is an estimate based on a typical residential consumer’s usage, and does not take into account the differences due to house sizes and the consumption patterns that vary among customers, Vectren spokesman Jeff Whiteside said.

Other utilities are giving similar good news to their natural gas customers. Market prices for the fuel are down from a year ago, due to a combination of decreased demand because of the recession, increased storage of the gas for the winter season, and the addition of some new supply to the market.

“The whole market moved in a way it hasn’t moved before,” Whiteside said.

Duke Energy Ohio, which provides natural gas and electricity service from the Franklin and Springboro area south to the Ohio River, anticipates a similar price drop for natural gas customers, Duke spokeswoman Sally Thelen said Thursday. She was unable to provide specific estimates.

Customers who enroll in a utility’s budget-billing plan do so in order to pay a predictable monthly rate at a predetermined figure, that the company will recalculate at least annually, to account for market price changes. Only about 67,000 of Vectren’s 320,000 residential customers in the Dayton region participate in the budget-billing plan, Whiteside said.

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.

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